Relationship Between Domestic Research and Development Activity and Technology Importation: An Empirical Investigation of Japanese Manufacturing Industries |
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Authors: | Misa Okabe |
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Institution: | National Institute for Research Advancement, Japan |
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Abstract: | This paper investigates the relationship between domestic research and development (R&D) activity and technological importation. We estimate the elasticity of factor inputs with respect to input prices using a cost minimization framework and time series data for Japanese manufacturing industries over the 1971–2000 period. The results show that domestic R&D activity and imported technology correlate with each other in the R&D-intensive industries, and the relationship is affected by the characteristics of the industry. Moreover, it is found that domestic R&D activity tends to be correlated with capital saving, while imported technology tends to be correlated with increased capital formation and employment. |
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Keywords: | domestic R&D elasticity of price of demand for factors technological importation |
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